Calculate the Accounting Rate of Return and Payback Period

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Question - DRT Co. is considering a project requiring an initial investment of K250, 000 in equipment with a life of five years and a residual value of K15, 000. Annual net cash flows will be K95, 000, K97, 000, K75, 000, K26, 000 and K10, 000 for the five years respectively. Calculate the Accounting Rate of Return and Payback Period.

Reference no: EM132836324

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